A new bill targeting the taxation of crypto assets in Puerto Rico has been introduced by a group of Democrats. The proposal aims to close a loophole allowing crypto investors to avoid taxes.
Goals of the New Legislation
The bill, proposed by Representative Nydia Velázquez of New York, is called the 'Fair Taxation of Digital Assets in Puerto Rico Act of 2025.' It aims to close a loophole allowing wealthy crypto investors to avoid federal taxes by moving to the island.
Impact on Puerto Rico's Economy
According to Velázquez and other lawmakers, the influx of crypto investors has negatively impacted the local Puerto Rican population. Rather than strengthening the economy, wealthy traders have inflated living costs, particularly in the housing market, driving up rental prices and putting pressure on residents.
Prosperspects of the Bill
The future of the bill appears uncertain. Republicans, typically favoring lower taxes, are unlikely to support measures perceived as anti-crypto. Meanwhile, supporters of the existing tax regime argue it has attracted investment and fostered Puerto Rico's economic growth.
This legislation underscores the growing tensions between the need to support innovation and the pursuit of economic justice, both in Puerto Rico and nationwide.
